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When competition might come from within, keep employees honest

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in HR Management,Human Resources

It’s a situation that happens more often than you might think: An em­ployer finds out that one of its em­ployees is preparing to leave and set up her own shop.

The discovery can happen in any number of ways—a telltale incoming piece of mail addressed to the employee, perhaps. Maybe the clues are in an email flagged during a routine review of computer servers. A customer might casually ask what management thinks of the em­­ployee’s up­coming departure. Quite often, office gossip is the giveaway.

But is the employer handcuffed, un­able to do anything about the up­start competitor because this employee didn’t sign a noncompe­tition agreement?

Can’t serve two masters

There are right ways and wrong ways for an employee to leave your company. Just because an employee isn’t subject to a noncompetition agreement doesn’t mean she can’t be liable for mistakes made on the way out the door.

Even without a noncompetition agree­ment, an e...(register to read more)

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